Ambac Establishes Strategic Partnership with Embrace Partners, Minority-Owned Specialty Insurance MGU and DE&I Platform

NEW YORK–(BUSINESS WIRE)–Ambac Financial Group, Inc. (NYSE: AMBC) (“Ambac”), a financial services holding company, today announced a strategic partnership through a minority stake in Embrace Partners (“Embrace”), a technology-driven managing general underwriter (MGU) of specialty commercial insurance and surety. The Embrace platform also consists of a Diversity, Equity and Inclusion (DE&I) consulting firm. Terms of the deal were not disclosed.

Embrace is led by industry veteran David Kayemit, who will remain the majority owner. Embrace will trade on Cayemitte’s commitment to deliver a compelling, technology-driven risk management platform including insurance and surety solutions for brokers and clients to achieve parity goals.

“David Cayemitte has been both a visionary and a tactician since launching The Cayemitte Group, an MBE insurance broker, in 2005,” said Ambac CEO Claude LeBlanc. “He is a respected thought leader, dedicated partner and active participant in the minority business enterprise (MBE) market. We are excited about this strategic partnership and investment in Embrace and are proud to support this mission-driven company.”

Embrace will offer educational services through the Minority Business Development Institute, a 501(c)(3) corporation that Cayemitte founded in 2010 to provide economic opportunity for minority-owned businesses. MBDI-trained contractors are selected by companies and government agencies that require a variety of development project costs, including the Dormitory of the State of New York (DASNY).

“David and his team are laser-focused on helping underserved populations—specifically, minority- and women-owned businesses and disabled veteran-owned businesses—participate in the construction industry,” said Michael Clay, Senior Director of Opportunity Programs. Group and Co- Supply Leader for DASNY. “They provide the training, access to capital and connections needed to bid on projects as a game-changing prime contractor. The partnership with Ambac will allow Embrace to offer these critically important programs to contractors across the country.”

Cayemitte, former AIG executive, The St. Paul Companies and Travelers, said: “Diversity has become a top priority for leading organizations in both the public and private sectors. Insurance procurement and DE&I-focused programs are great tools for businesses to meet their environmental, social and governance (ESG) commitments. The Embrace platform offers the opportunity to spend responsibly in exchange for excellent products and services.

“The establishment of Embrace Partners marks an important achievement in the insurance industry. We are leading a broader movement to provide economic opportunity to historically marginalized groups. One of our primary goals is to increase the participation of minority- and women-owned businesses and to serve disabled veteran-owned businesses in community projects through access to training, working capital and insurance. Our collective efforts seek to balance the moral outlook with the business goal of aligning corporate America in a way that will help close the gaps of inequality.

Embrace’s operating platform will adopt a “digital-first” mindset, using technologies such as data science, artificial intelligence and cloud computing to put efficiency and customer experience at the forefront of its model.

About Ambac

Ambac Financial Group, Inc. (“Ambac” or “AFG”) is a financial services holding company headquartered in New York. Ambac’s core business is a growing specialist P&C distribution and underwriting platform. Ambac also has a legacy financial guarantee business. Ambac common stock trades on the New York Stock Exchange under the symbol “AMBC.” For more information, please visit www.ambac.com.

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